GCC Ice Cream Market Report

GCC Ice Cream Market Size:

The GCC ice cream market size is projected to exhibit a growth rate (CAGR) of 6.03% during 2024-2032. The market is primarily driven by increasing disposable incomes, changing consumer preferences toward indulgent treats, the introduction of innovative flavors and products, expanding retail distribution networks, rising temperatures, and rising young population.

GCC Ice Cream Market Analysis: 

• Major Market Drivers: The GCC ice cream market demand is escalating due to increasing disposable incomes across the region, which fuels higher spending on indulgent food products. Changing consumer preferences toward healthier and premium ice cream options also contributes to market growth. Additionally, the hot climate in GCC countries encourages higher consumption of ice cream throughout the year, further propelling market demand. Expansion of retail channels and the introduction of new flavors and product varieties by manufacturers are other significant drivers enhancing market dynamics. 
• Key Market Trends: One major trend in the GCC ice cream market is the popularity of artisanal and gourmet ice cream flavors, catering to discerning consumer tastes. Health-conscious trends have increased demand for low-fat, sugar-free, and organic ice cream options. Another trend is the increasing adoption of online retail platforms for ice cream sales, offering consumers convenience and a wide variety of choices. Furthermore, collaborations between ice cream manufacturers and local dairy suppliers to ensure freshness and quality are becoming crucial in the market, which further shapes the GCC ice cream market, influencing how companies strategize to capture and expand their market presence amidst evolving consumer preferences and competitive pressures.
• Competitive Landscape: Some of the major market players in the GCC ice cream industry are continuously introducing new flavors, healthier options (such as low-fat or sugar-free ice creams), and novel product formats like ice cream sandwiches and popsicles. Additionally, local players play a significant role, offering unique flavors and catering to regional preferences. Regional brands and even international players incorporate local flavors and ingredients, such as saffron, dates, and rosewater, to appeal to traditional tastes while offering a unique twist.
• Challenges and Opportunities: Challenges in the GCC ice cream market include fluctuating raw material prices, particularly dairy products, which can impact production costs. Regulatory challenges related to food safety standards and import regulations in some GCC countries also pose hurdles for market players. However, opportunities abound with the growing trend toward premiumization and the introduction of healthier ice cream options. Expanding into underserved markets within the GCC region and leveraging digital marketing and e-commerce platforms present additional growth opportunities for manufacturers and retailers.

GCC Ice Cream Market Trends:

Health and Wellness Trends

Health-conscious consumers in the GCC are increasingly opting for healthier ice cream alternatives. According to the UAE Ministry of Health and Prevention, there has been a notable shift toward low-fat and sugar-free ice creams. This trend is driven by rising awareness of health issues like obesity and diabetes. Major players such as Almarai and Nestlé have responded by expanding their ranges of healthier options, including dairy-free and gluten-free varieties, to meet consumer demand. In Saudi Arabia, the market for healthy ice cream alternatives has grown by 15% annually, highlighting a regional shift. This shift is influencing product formulation, packaging, and marketing strategies to emphasize nutritional benefits and cater to a more health-conscious demographic. Additionally, retailers are increasing shelf space for these healthier options, reflecting the growing consumer preference for products that align with their wellness goals.

Premiumization and Artisanal Offerings

There is a growing demand for premium and artisanal ice creams in the GCC region, driven by consumers' willingness to pay more for unique flavors and high-quality ingredients. According to the GCC Food and Beverage Sector report published by the Gulf Cooperation Council, premium ice cream sales have seen a steady increase of 8% annually over the past five years. This trend is reflected in the expansion of specialty shops and the introduction of exclusive flavors by brands like Baskin-Robbins and Froneri. Local artisans are gaining traction, offering handcrafted ice creams that appeal to discerning palates and cater to regional tastes. As disposable incomes rise, consumers are increasingly seeking indulgent experiences, propelling the growth of this segment. Additionally, social media has amplified this trend, with influencers showcasing premium ice cream brands, further driving consumer interest and demand for high-end products.

Digital Transformation and E-commerce Growth

The GCC ice cream market is experiencing a digital transformation with the rapid growth of online shopping platforms for ice cream products. According to the Saudi Ministry of Communications and Information Technology, e-commerce sales of food and beverages, including ice cream, have doubled in the past two years. Major brands such as Unilever and Mars, Inc. are investing in e-commerce capabilities, including mobile apps and online ordering systems, to capitalize on this trend. This shift is driven by convenience-seeking consumers who appreciate the ease of ordering ice cream online and having it delivered to their doorsteps. As digital infrastructure improves across the region and consumer trust in online shopping grows, the e-commerce segment of the ice cream market is expected to account for the majority of the GCC ice cream market share.

GCC Ice Cream Market Segmentation: 

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional and country levels for 2024-2032. Our report has categorized the market based on flavor, category, product, and distribution channel.

Breakup by Flavor: 

• Chocolate
• Fruit
• Vanilla
• Others
   

The report has provided a detailed breakup and analysis of the market based on the flavor. This includes chocolate, fruit, vanilla, and others.

Chocolate remains a perennial favorite, appealing to a broad demographic due to its rich taste and numerous variations. Fruit-flavored ice creams, such as mango, strawberry, and mixed berry, attract health-conscious consumers and those seeking refreshing options, particularly in the region’s hot climate. Vanilla, with its classic and versatile appeal, continues to be a top choice, often used as a base for other desserts. Additionally, unique flavors such as pistachio, rose, and regional specialties like saffron and date are gaining popularity, reflecting cultural preferences and expanding the market. This diversity in flavor offerings ensures that the ice cream market caters to a wide range of tastes, driving continuous growth and innovation in the GCC.

Breakup by Category: 

• Impulse Ice Cream
• Take-Home Ice Cream
• Artisanal Ice Cream
   

A detailed breakup and analysis of the market based on the category have also been provided in the report. This includes impulse ice cream, take-home ice cream, and artisanal ice cream.

Impulse ice cream, which includes single-serve items such as ice cream bars and cones, is highly popular due to its convenience and appeal to spontaneous buyers, especially in high-traffic areas like malls and tourist spots. Take-home ice cream, available in larger containers such as tubs and bricks, caters to families and individuals looking to enjoy ice cream at home, boosting sales through supermarkets and hypermarkets. Artisanal ice cream, known for its premium quality, unique flavors, and handcrafted appeal, attracts discerning consumers seeking a gourmet experience. This segment is often sold through specialty stores and upscale retail outlets, adding a layer of sophistication to the market. The combined influence of these categories ensures robust growth, catering to various consumer needs and preferences, and driving the overall expansion of the GCC ice cream market.

Breakup by Product:

• Cup
• Stick
• Cone
• Brick
• Tub
• Others
   

The report has provided a detailed breakup analysis of the market based on the product. This includes cup, stick, cone, brick, tub, and others.

Cups offer convenient, single-serve options popular for their portability and portion control. Stick ice creams are favored for their ease of consumption, especially among children. Cones provide a classic, indulgent experience, appealing to traditionalists. Bricks are ideal for family sharing and home consumption, while tubs offer bulk quantities for parties and gatherings. Other innovative forms, such as mochi or ice cream sandwiches, add variety and cater to niche markets. This range of products ensures wide market appeal, meeting the needs of different consumer segments and driving overall market growth along with enhancing the market appeal.

Breakup by Distribution Channel: 

• Supermarkets/Hypermarkets
• Convenience Stores
• Ice Cream Parlours
• Online Stores
• Others
   

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes supermarkets/hypermarkets, convenience stores, ice cream parlours, online stores, and others.

Supermarkets and hypermarkets dominate with extensive product ranges and frequent promotions, attracting bulk buyers. Convenience stores contribute by offering quick access to popular ice cream brands, catering to impulse purchases. Ice cream parlors add value with unique, freshly made flavors and an experiential purchasing process. Online stores have gained traction, providing convenience and a broader selection, especially appealing during the pandemic. Other channels, including kiosks and specialty stores, enhance market diversity by targeting niche segments and specific consumer preferences, along with seasonal pop-up shops adding excitement and variety to the market that further works for the enhancement and development.

Breakup by Country:

• Saudi Arabia
• UAE
• Qatar
• Bahrain
• Kuwait
• Oman
   

The report has also provided a comprehensive analysis of all the major markets in the region, which include Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, and Oman.

As per the GCC ice cream market forecast, Saudi Arabia represents one of the leading markets with high consumption rates due to its large population and hot climate. The UAE, known for its tourism and high disposable income, sees significant demand for premium and artisanal ice creams. Qatar, benefiting from a wealthy populace and a growing expatriate community, shows robust market growth. Bahrain and Kuwait, with their increasing urbanization and Western influence, drive demand for diverse and innovative ice cream flavors. Oman, while smaller, contributes through rising tourism and a growing retail sector. Each country’s distinct economic and cultural factors collectively fuel the overall expansion of the GCC ice cream market.

Competitive Landscape: 

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have been provided.
• Some of the major market players in the GCC ice cream industry are focusing on product innovations, pricing strategies, distribution networks, and brand recognition. Additionally, local players play a significant role, offering unique flavors and catering to regional preferences. Companies are also expanding their market presence through strategic partnerships, joint ventures, and retail expansion. For example, Baskin-Robbins has expanded its footprint in the GCC through franchising, allowing it to reach a wider audience. Moreover, the market is witnessing the rise of boutique and artisanal ice cream brands that focus on unique flavors, premium ingredients, and customized offerings. Brands like M’Oishi in the UAE, known for its mochi ice cream, are gaining popularity among consumers seeking novelty and high-quality products.

GCC Ice Cream Market News:

• June 29, 2023: House of Pop, Dubai-based ice cream brand, aims for top spot in GCC’s healthy frozen dessert sector through franchising and distribution partnerships. The firm has also established a franchising model, with which it is now building its presence in Saudi Arabia and Bahrain.

GCC Ice Cream Market Report Scope: 

Key Questions Answered in This Report:

• How has the GCC ice cream market performed so far, and how will it perform in the coming years? 
• What has been the impact of COVID-19 on the GCC ice cream market? 
• What is the breakup of the GCC ice cream market on the basis of flavor? 
• What is the breakup of the GCC ice cream market on the basis of category?
• What is the breakup of the GCC ice cream market on the basis of product?
• What is the breakup of the GCC ice cream market on the basis of distribution channel?
• What are the various stages in the value chain of the GCC ice cream market? 
• What are the key driving factors and challenges in the GCC ice cream market? 
• What is the structure of the GCC ice cream market, and who are the key players? 
• What is the degree of competition in the GCC ice cream market?

Key Benefits for Stakeholders: 

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the GCC ice cream market from 2018-2032. 
• The research report provides the latest information on the market drivers, challenges, and opportunities in the GCC ice cream market.
• The study maps the leading, as well as the fastest-growing, markets. It further enables stakeholders to identify the key country-level markets within the region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the GCC ice cream industry and its attractiveness. 
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.